Reasons Behind Failure in Stock Market

Millions of investors make an entry into the stock markets like NSE/BSE, NASDAQ, etc just to make profit on their investments.

Only 2 or 3 investors out of 100 investors make a dent in the stock trading and the rest fade out, they incur heavy losses. Why is it so?

In stock markets, you may lose money for various reasons, 

First, you may not have adequate skills to drive in the markets and face the trading challenges. 

Second, you are skilled but driven by emotions, and over expectations on the invested money. Thus, experiencing a collapse in the stock trading circuits. 

In the first case, you need a type of preparation that enables you to understand the stock markets, operations, functionaries and various kinds of trading techniques. 

Making money on stocks is a continuous learning process and you will have to update knowledge from time to time.

Economics and Statistics play a prominent role, realising and analysing the statistical data properly will put your trading in the right track to succeed. 

Stock trading becomes beneficial by following certain ground rules that are: 

It reduces your risk at stock markets thereby lessening the probable losses and increasing the winning chances on trade.

Select a market entry position on stocks gathering high volume trade, and experiencing high volatility. Likewise, exit positions from the markets after making a good profit margin. 

Entry and exit positions that are the plug-in, plug-out from the stock markets should be executed only after a detailed technical research using candlestick charts. 

Experts make use of simple moving average techniques, exponential moving average techniques, combination of different time frames such as 200 day SMA & 5 day SMA, Moving Averages of Convergence & Divergence, MACD. 

From this, it is evident that before getting into stock markets, you must learn to evaluate the acquired stock statistical data for the right kind of decision. 

In the learning process, you will be exposed to candlestick patterns the most sought for, in the stock market analysis. 

In nutshell, you must possess all qualities mentioned below to make overcome losses in the stock markets:

Learn the inside out of the stock trading operations in the NSE/BSE.

Keep a track of all stock market activities for future references.

Be associated with a good mentor who can guide you in the time of crises. 

After every trade, carefully analyse and learn from your own failures. Be mindful to learn and avoid the mistakes that occurred in the previous instances. 

In the hectic stock market trading, you may get stuck unconditionally, and without hesitation you must seek the help of an expert. 

Never make a blindfold investment, never get carried away by others’ advice.